Boston Globe union accepts deal

The newspaper has been losing millions each year Members of the largest union at the Boston Globe have voted by nearly two to one to accept pay cuts in an attempt to save the struggling newspaper. The Boston Newspaper Guild's decision will enable the 137-year-old paper to save $10m a year. The Globe's owner, the New York Times, wants to sell the loss-making title. Analysts say the pay and benefit cuts approved by the union may make the newspaper a more attractive purchase for potential buyers. "It has been a long and difficult period for everyone and we hope that we can now work with prospective buyers to help the Boston Globe carry on with its vital mission to promote good journalism and protect free speech," said BNG head Dan Totten. Under the agreement, workers will see their pay cut by almost 6%, and other benefits will be reduced and a pension freeze introduced. The Globe's owner, the New York Times, had imposed a 23% pay cut after the union rejected an earlier proposal in June, which would have cut pay by 8%. Millions lost Following Monday's vote, a Boston Globe spokesman said "we deeply appreciate the sacrifices that guild members are making". The Boston Globe is among the best-known newspapers in the US The Globe, one of the oldest big-city US newspapers, lost $50m last year and is expected to lose $85m this year. The New York Times bought the Boston Globe in 1993 for $1.1bn, but the current value of the title is estimated to be no more than $250m. Three potential bidders are reportedly interested in buying the newspaper. The Boston Globe is the latest title to find itself squeezed by falling sales, rising costs and declining advertising revenues. Traditional papers also face stiff competition from websites offering news content for free and other sites luring away classified advertisers. At least 12,500 jobs have been lost in US print journalism in the past two years